ToR: Consultancy Services on Demand Flexibility in India

1. SEforALL Background

Sustainable Energy for All (SEforALL) is an international organization working with leaders in government, the private sector and civil society to drive further, faster action toward achievement of Sustainable Development Goal 7 (SDG7), which calls for universal access to sustainable energy by 2030, and the Paris Agreement, which calls for reducing greenhouse gas emissions to limit climate warming to below 2° Celsius. Achieving these goals will require a radical rethink of the way we produce, distribute, and consume energy. SEforALL is at the heart of this foundational shift to ensure no one is left behind. Drawing on data and evidence, we identify a critical path to success in achieving SDG7.

Former UN Secretary-General Ban Ki-moon launched the Sustainable Energy for All initiative in 2011. Now an independent organization, we maintain close links with the UN, including through a relationship agreement, partnerships with UN agencies and with SEforALL's CEO acting as the UN Secretary-General's Special Representative for Sustainable Energy for All and Co-Chair of UN-Energy. These roles include advising the UN Secretary General and his staff on issues relating to sustainable energy and the implementation of SDG7 and supporting the coordination of sustainable energy issues in the United Nations system.

The ambitions of SDG7 are extraordinary. Aiming to achieve them in the context of the Paris Agreement on climate change involves transformation at a scale never undertaken before. Swift action must be taken by Leaders in governments, private sector companies, institutions, financiers, development banks, unions, communities, entrepreneurs, and civil society. As we enter the final decade to achieve SDG7, SEforALL has strategically chosen to strengthen global agenda-setting while expanding its activities to an engagement model that prioritizes data-driven decision-making, partnerships with high-impact countries and implementation on the ground. The new SEforALL three-year business plan outlines “results offers” that scope out our planned interventions and demonstrate to our funding partners the impact of their support. 

2. Context

With the increasing penetration of renewable energy sources in India's electricity generation mix, there is a growing need for flexible demand management solutions to balance energy consumption with the intermittency of renewable energy supply. The Indian government has set ambitious targets to install 500 GW of non-fossil energy capacity by 2030, with a significant portion of this coming from variable renewable sources such as solar and wind. By 2030, it is anticipated that 430 GW of energy will be generated from these sources. To accommodate this variability and ensure grid stability, distribution companies (DISCOMs) and state authorities can implement demand flexibility initiatives.

The primary objective of this initiative is to assist DISCOMs and state authorities in at least four Indian states in designing and implementing DISCOM-led demand flexibility programs. These programs aim to enable 2- 3 GW of flexible demand, allowing DISCOMs to manage fluctuations in renewable energy generation effectively. To achieve this, the initiative will leverage existing methodologies for estimating demand flexibility potential and work with regulators to introduce necessary regulatory changes.

SEforALL is leading the Mission Efficiency India initiative over the next two years, focused on:

1. Elevating energy efficiency in India, both in institutional and individual agendas, including through innovative outreach and engagement campaigns that showcase people-focused benefits of an “Energy Efficient LiFE”, including through demand flexibility.
2. Supporting energy efficiency in India, to harness India’s national aspirations by supporting energy efficiency strategies and implementation. Identifying ambitious goals will involve sector-specific measures that lay the groundwork for a supportive environment to attract the necessary investments. SEforALL will support the Bureau of Energy Efficiency (BEE) to develop/update/align its national roadmap for doubling Energy Efficiency (EE) and support subnational implementation framework development. This includes support for utilities to address demand side management and grid flexibility challenges. The implementation framework support would be with local technical experts providing support to BEE from SEforALL within the Mission Efficiency initiative to provide in-country support.
3. Investing in energy efficiency in India, including with strategic assistance at the state and utility level to demonstrate and scale up energy efficiency and demand flexibility implementation that leads to tripling of renewable energy and doubling of energy efficiency progress.

The Demand-Flexibility component focuses on promoting demand flexibility in collaboration with DISCOMs, state authorities, regulators, and other stakeholders. The component will focus on assisting with conceptualizing, designing, implementing, and monitoring regulator-approved demand flexibility programs in at least four states in India. It will also explore different regulatory approaches, including the creation of regulatory sandboxes, to facilitate the integration of demand flexibility into existing frameworks. The four states will be selected in consultation with project partners, possibly leveraging existing initiatives or expressions of interest.

By encouraging participation from private sector service providers, the initiative aims to create a vibrant market for demand flexibility services in target Indian states. Furthermore, the initiative will coordinate with existing programs led by BEE, such as the Demand Side Management (DSM) program. By aligning efforts and identifying synergies, the initiative seeks to enhance the impact of ongoing initiatives and promote the adoption of efficient and smart appliances.

3. Objective

The objective of this TOR is to seek a firm to assist the delivery of technical assistance on DISCOM-led demand flexibility programs in four states in India for 18 months (July 2024-December 2025).
All activities under this assignment are to be conducted in close collaboration with SEforALL and the Mission Efficiency India Project Unit, as well as in ensure close coordination and alignment with the other Component of the Mission Efficiency India initiative.

The main milestones this assignment is expected to contribute towards are:

Milestone 1: Establish Leadership Group and Consultative Group

A Leadership Group is established to drive coordination on demand flexibility frameworks and a longer-term agenda for demand flexibility in India. It will comprise DISCOMs, regulators, and market players from at least four target states. A Consultative Working Group is also created, comprising core staff from public authorities, including the Forum of Regulators and GRID India. This workstream involves designing terms of reference, identifying and engaging focal points, defining the scope of work for the two groups in consultation with participants, and facilitating discussions to advance progress. For each group, the selected firm will facilitate effective communication and collaboration among group members, identifying key stakeholders and encouraging their participation.

Milestone 2: Launch Demand-Flexibility Simulation Tool/Model

In close collaboration with SEforALL, the selected firm will develop and deploy a user-friendly demand- flexibility simulation tool, tailored to the needs of DISCOMs and state regulators. This involves conducting stakeholder consultations to understand user requirements, developing the tool, and implementing necessary software functionalities. Additionally, the selected firm will organize training sessions for representatives from at least 4 DISCOMs, 4 state regulators, and local industry stakeholders to build their capacity to use the tool to plan specific, real-case demand-flexibility programs. The demand flexibility model would be open-source code and would be transferred to the clients in its full versions with necessary documentation/manual. The selected firm would collaborate with SEforALL to ensure the model’s full utilization as a public good.

Milestone 3: Launch of White Paper

The selected firm will liaise with SEforALL, BEE, the Ministry of Power (MoP) and relevant experts to produce a comprehensive white paper on demand flexibility. The white paper will provide concrete evidence of demand-flexibility opportunities and recommendations to mainstream demand-flexibility into national DSM programs. This workstream involves conducting research, analysing data, and drafting the white paper content. The selected firm will also facilitate validation meetings to gather inputs and ensure alignment with stakeholders' priorities and sector gaps. Additionally, the selected firm will coordinate closely with SEforALL, BEE, MoP to launch the white paper and support the dissemination of findings with target audiences.

Milestone 4: Assist the updating of DSM regulations

The selected firm will work closely with SEforALL, the state regulators and DISCOMs in at least 4 states to facilitate the update of DSM regulations to expedite demand flexibility programs. This involves conducting regulatory assessments, identifying gaps, and drafting proposals for regulatory amendments. The selected firm will provide technical expertise to ensure that the updated regulations align with international best practices and meet the specific needs of Indian states. Additionally, the selected firm will support advocacy efforts to gain regulatory approval for the updated regulations.

Milestone 5: Submission and approval of demand flexibility proposals

In close collaboration with SEforALL, the selected firm will assist DISCOMs in at least 4 states preparing demand flexibility proposals, equivalent to at least 2-3 GW of flexible demand, leveraging its expertise in demand-side management. This involves conducting demand flexibility simulation and modelling, identifying specific sectoral opportunities, as well as assisting with program design and development of proposal documents. The selected firm will support DISCOMs in presenting their proposals to regulators, providing technical analysis and evidence to demonstrate the feasibility and benefits of the proposed initiatives.

Additionally, the selected firm will facilitate discussions between DISCOMs and regulators to address any concerns and facilitate expedite approval of the proposals.

Milestone 6: Announcement of Demand Flexibility Aggregation Services

In close coordination with SEforALL, the selected firm will engage with at least 5 private sector service providers, active at the federal- and/or state-level, to promote the development of demand flexibility aggregation services. This involves organizing meetings/workshops to assess market opportunities, and facilitating partnerships between service providers and DISCOMs. The selected firm will advise service providers in developing business models and service offerings tailored to the market in 4 Indian states.

Milestone 7: Launch of India Demand Flexibility Online Platform and Certification Initiative

The selected firm will develop the content for the India Demand Flexibility Online Platform, to be hosted on the Mission Efficiency website. The Platform will serve as a central hub for information, resources, and tools related to demand flexibility. This workstream involves working closely with SEforALL to assist the design of the platform requirements, populating it with content, and ensuring user-friendly navigation. Additionally, the selected firm will design a Certification Initiative for demand flexibility professionals, defining certification criteria, developing training materials, and developing a roll-out plan. The firm will promote the Platform and Certification Initiative through outreach activities and partnerships with relevant stakeholders.

4. Scope of Work

To deliver on the above stated objectives and workstreams, the selected firm will undertake the following tasks:

4.1 Workplan, Kick-off Meetings and Inception Report

1. Propose a project workplan for delivery; produce a priority list of possible target States and utilities based on agreed criteria, including a list of key contacts target in State Designated Agencies (SDAs), regulatory authorities, utilities and other key institutions. Finalize a workplan which also includes the overall methodological approach for the project, proposed activities, capacity building and communications strategy related to project delivery, and a monitoring and reporting plan to track progress with all target stakeholders.
2. Prepare inception workshop, in coordination with SEforALL and main government stakeholders, invite key stakeholders for the assignment. Present the assignment and explain the goals and relevance of the project from a national perspective, and the benefits of taking on this activity and the long-term development of the country. Assist agreement on the workplan between SEforALL, BEE and key stakeholders, officially kick-off the project with an inception workshop/meeting. Develop an inception report based on the outcomes and information captured in the initial kick-off meetings.

4.2 Creation of Consultative and Leadership Groups

1. Consultative working group: identify and engage core staff from public authorities, including the Forum of Regulators and GRID India. Draft terms of reference and workplan for the group. Organize a kick-off meeting to gather feedback and organize and facilitate regular meetings to advance activities agreed in the workplan.
2. Leadership group: identify and engage core staff from DISCOMs, regulators, and most prominent private market players from four states. Draft terms of reference and workplan for the group. Organize a kick-off meeting to discuss priorities and validate the workplan, and organize and facilitate regular meetings to advance activities agreed in the workplan

4.3 Launch of Demand-Flexibility Simulation Tool and White Paper

1. Demand-Flexibility Simulation Tool: Conduct exploratory meetings to assess stakeholders’ needs requirements for the simulation tool. Design and develop a user-friendly simulation tool tailored to the needs of DISCOMs. Test and refine the simulation tool based on user feedback and usability testing. Provide training sessions for representatives from DISCOMs and state regulators on how to use the simulation tool effectively.
2. White Paper: Engage MoP to agree on requirements, outline, dissemination plans. Conduct research and analysis on demand flexibility best practices, case studies, and develop recommendations. Organize and facilitate stakeholder consultations to gather inputs and feedback for the white paper. Prepare the white paper for publication and facilitate dissemination.

4.4 DISCOM, regulatory and private sector support

1. Demand Flexibility Proposal Preparation: Conduct demand flexibility simulations with at least 4 DISCOMs in target states to identify potential opportunities, and simultaneously build their capacity. Assists contact points in target DISCOMs to develop demand flexibility proposals, including detailed project plans, cost estimates, and expected outcomes. Provide technical assistance to DISCOMs in presenting their proposals to state regulators. Support negotiations and discussions between DISCOMs and regulators to address any concerns and obtain approval for the proposals.
2. Regulatory Support: Conduct regulatory assessments in at least 4 states to identify opportunities and challenges for integrating demand flexibility into existing regulations. Draft recommendations to update DSM regulations in collaboration with state regulators and DISCOMs. Provide technical expertise and advocacy to support regulatory approval of demand flexibility programs.
3. Private sector support: Identify and engage private sector service providers interested in offering demand flexibility aggregation services. Organize awareness workshops and industry forums to promote demand flexibility opportunities. Facilitate partnerships between service providers and DISCOMs to pilot demand flexibility initiatives.

4.5 Online Platform, Certification Initiative, sustainability plan

1. Online Platform: Design requirements for online platform, gather existing resources and develop content. Assist in the development of the platform.
2. Sustainability plan: compile a detailed proposal with key recommendations, roles and responsibilities, and resources needed to ensure long-term sustainability of the Demand-Flexibility simulation tool, online Platform, Certification Initiative, as well as further technical assistance and resources needed to support sustainability of the specific demand-flexibility programs identified.

5. Approach, Timeline and Deliverables

Approach: The selected firm will maintain close contact with a designated SEforALL contact(s) throughout the assignment to facilitate access to documentation, relevant SEforALL staff, and other partners as and if needed. All draft reports and deliverables will be reviewed by SEforALL.

The selected firm should make a concerted effort to mainstream gender considerations throughout this assignment. This includes following gender parity when looking for candidates. Furthermore, the firm is encouraged to implement a 40:60 female to male ratio in their team and submit a copy of gender policies followed by the firm.

Deliverables and Timeline:

The deliverables and indicative timelines for Mission Efficiency India Demand Flexibility component are below. The overall objective is to ensure that new utility-led, regulator-approved demand-side management or demand flexibility programs are formally announced in at least 4 states in India. The reports must be provided in English.

Bidders are required to submit a proposal encompassing all activities. Please note that funding is currently available for activities 1-4 and 6, while activity 5 will proceed contingent upon securing additional funding.
 

6. Travel

Travel to the selected target states may be required, depending on the firm's location, with the travel schedule to be agreed upon during the work planning phase.

7. Eligibility Criteria and Qualification Requirements

7.1 Eligibility Criteria

• Registered company/legal entity with a minimum of 5 years’ experience in the subject area (scanned copy of the Certificate of Incorporation to be submitted), eligible to work in India.
• Completed and signed SEforALL Bank Details Form.
• Statement of Confirmation.
• Audited Financial Statements for the last 2-3 years.
  • Profitability: Profit Margin Ratio or Return on Assets Ratio should be preferably positive. In case of negative profit margin ratio, SEforALL may request additional documents and/or adapt payment terms and conditions.
  • Solvency: A solvency ratio should be preferably more than one (1). In case of negative solvency, SEforALL may request additional documents and/or adapt payment terms and condition
  • Turnover: The average annual turnover for the past three (3) years (or for the period the bidder has been in business if it has not yet reached three (3) years) should be at least 1 time more than anticipated value of the contract.

Any direct or indirect work related to this assignment must comply with the Foreign Contribution (Regulation) Act (2010). The bidders are solely responsible for assessing the applicability of FCRA regulations to their activities. SEforALL assumes no liability for any violations of FCRA regulations by the bidders or their subcontractors engaged in this assignment.

7.2 Qualification, Requirements, and Expertise

The applying firm must demonstrate the following criteria:

• Proven track record:
  • Extensive experience in the power sector in India, particularly in demand-side management
    (DSM) and demand flexibility in modelling, and consulting with utilities and/or regulators.
  • Previous success full implementation of similar projects, ideally within the Indian context or similar
    emerging markets.
• Technical expertise:
  • Demonstrated technical expertise in developing and deploying simulation tools for demand
    flexibility, in particular open-source utility dispatch models for investigating price signals and
    demand-flexibility opportunities.
  • ExperienceinconductingregulatoryassessmentsinIndiaandadvisingonregulatoryapprovalfor
    demand-flexibility programs.
  • Ability to develop comprehensive research and technical reports, substantiated by robust data
    analysis.
• Stakeholder engagement:
  • Proven ability to engage and collaborate with diverse stakeholders, including utilities, regulatory
    authorities, market players, and public authorities, ideally in multiple Indian states.
  • Experience in facilitating high-level consultative groups with power sector authorities and
    government institutions to support policy initiatives.
• Capacity building and training:
  • Demonstrated experience in organizing and delivering training sessions in India to build the
    capacity of stakeholders in using modelling tools and implementing demand flexibility programs.
• Project management:
  • Strong project management capabilities, including developing detailed work plans, budgeting,
    monitoring and reporting, and ensuring timely delivery of milestones.
  • Experience in coordinating multi-stakeholder projects with a focus on achieving tangible
    outcomes

The applying firm must demonstrate that it has the capability to deploy experienced professional staff to address the scope of work outlined and address potential staffing/team membership contingencies that may arise during the implementation of the project. For the implementation of all the deliverables, the following experts may be needed from the firm: team leader and experts on demand flexibility and demand-side management modelling, regulations, stakeholder engagement and communication.

The roles of the experts may be combined, provided experts should have demonstrable experience in more than one of the above fields of work. In particular, this provision applies to the roles of team leader, modelling, and regulations experts. The team leader will be responsible for managing all the activities envisaged under this contract, assessing the quality of the submitted reports and drafts, and communicating progress achieved during the implementation of the activities on a regular basis. 

All experts must be excellent in English skills, and additional knowledge of Hindi or other relevant languages are considered as an asset. All experts engaged are expected to conduct as per ethics, standards and values of UN agencies and International Organizations. The team leader should consult and report on each workstream directly to the designated project lead from SEforALL.

The qualifications and experience of the team required are as below, but the applying firm is welcome to provide CVs/information of additional experts or local experts that could be closely involved in the project.

7.3 Qualification and Experience Requirements for the Team

i. Team Leader:

• Advanced degree in Engineering, Management, Business Administration or a related field.
• At least 15 years of experience in the power sector, with a focus on DSM and demand flexibility programs. Strong understanding of the regulatory landscape and policy frameworks related to DSM in India. Proven experience in building and maintaining relationships with government
  officers and industry decision-makers is required.
• Proven leadership in managing large-scale energy projects. Excellent stakeholder management
  and communication skills.

ii. Demand-Side Management Policy Expert

• Advanced degree in Engineering, Energy Systems, Public Policy or a related field.
• At least 5 years of experience in energy policy and/or regulatory affairs in the energy sector,
  preferably in India.
• In-depth understanding of DSM regulations and policy development processes, preferably at
  the state-level in India. Experience with energy efficiency or demand-side policy is an asset.
• Experience in drafting regulatory proposals and working with government bodies on policy
  approval. Experience in engaging with industry stakeholders in the energy sector is an asset.

iii. Demand Flexibility Modelling Expert:

• Advanced degree in Engineering, Data Science, Energy Systems, or a related field.
• At least 4 years of experience in power sector modelling. Demonstrated expertise in developing
  simulation tools for demand flexibility or demand-side management.
• Strong analytical skills and experience in conducting technical assessments and coordinating
  technical and analytical projects in the power sector, preferably in India.
• Experience in training stakeholders on the use of technical tools is an asset.

iv. Engagement and Coordination Expert:

• Advanced degree in Energy Policy, Sustainability Studies or a related field.
• At least 7 years of experience in stakeholder engagement and project coordination within the energy sector. Experience with energy efficiency or demand-side management projects is an asset.
• Proven experience in organizing and facilitating stakeholder meetings and workshops, project planning, budgeting and experience in developing and executing communication strategies.
• Excellent communication and facilitation skills to ensure effective collaboration among diverse
  groups.

8. Bidding Process

Proposals can also be submitted as a single entity and consortia. Interested and qualified bidders must submit one Technical Proposal and one Financial Proposal as separate documents. Proposals must be submitted either in PDF of PPT format and should include the following:

Technical Proposal

• Brief background about your organization.
• The organization’s experience in carrying out similar work including relevant skills, qualifications, and
  knowledge.
• Your understanding of the assignment, approach/methodology as well as proposed workplan. Any
  deviations from the Terms of Reference should be clearly indicated.
• Three (3) relevant organizational/client references from the last three years.
• CVs of key personnel.

Financial Proposal, outlining the costs associated with carrying out the scope of work, including:

• Labour costs (personnel, daily rates, LOE).
• Equipment costs (if any).
• Other costs.
• Activity-based cost breakdown.
• All costs must be in USD and inclusive of all taxes.

9. Evaluation and Conflict of Interest

Statement of Confirmation:Confirmation of no conflict of interest (e.g., none of the bidder’s key personnel, including individuals directly involved in project implementation, management, or decision-making, is associated - financially, personally, or employment-wise - with concerned SEforALL staff, SEforALL experts/consultants recruited under this project).

• Confirmation that no fees, gratuities, rebates, gifts, commissions, or other payments, other than those explicitly stated in the offer, have been given, received, or promised in connection with
  the selection process or in contract execution.
• Confirmation of satisfactory past performance, including adherence to contractual obligations,
  timely delivery of services, and compliance with relevant regulations, and confirmation that the bidder is not debarred from conducting business in the country where the procurement is taking place.
• Confirmation that the bidder did not participate directly or indirectly in the preparation of the concerned procurement process or the bidding documents, including the terms of reference, being subsequently used by SEforALL.
• Confirmation of no conflict of interest between or among bidders, and a commitment to disclose any potential conflicts of interest to SEforALL for resolution prior to the submission of bids.
   

The evaluation of proposals will be based on an 80 – 20 split for technical proposal and financial proposal, respectively. Details of the evaluation criteria are attached as Annex I.

10. Submissions of Proposals

Please submit your proposal to procurement@seforall.org by 15 July 2024, 17:00 Central European Summer Time (CEST). In case of questions or queries please contact SEforALL at procurement@seforall.org

Annex I – Evaluation Criteria

1. Compliance with eligibility criteria: Pass/Fail

2. Technical Evaluation Criteria

Technical Capacity: 25 points
Expertise of the organization as per 7.2:

• How much knowledge and experience does the firm have in developing and/or informing demand- flexibility programs and policies at national and state level? (5 points)
• How well can the firm demonstrate its ability to facilitate stakeholder engagement and buy-in for the proposed demand flexibility assistance in states in India? (5 points)
• How much expertise does the firm have on processes related to demand flexibility implementation in India, such as: (5 points)
  • Open-source utility dispatch modelling for investigating price signals and demand-flexibility opportunities
  • Sector specific technical and regulatory analysis and recommendations
  • Evaluating and assessing regulatory gaps and needs
  • Advisingonregulatoryapprovalforutility-leddemand-flexibilityprograms.
• How much experience does the firm have in capacity building, stakeholder engagement and communication on demand-flexibility modelling and implementation, particularly in developing country context? (5 points)
• Does the bidder have sufficient project management, organizational structure, adequate staff, local presence and sufficient sources of technical expertise to deliver all work streams of this project for SEforALL and targeted countries? (5 points)

Approach and Methodology: 30 points

Methodology and Approach of the assignment with detailed description of carrying out activities as per workstreams and scope of work referred in section 2 and 3 in India. The approach that indicates ability to enhance country and stakeholder buy-in for the project would be an advantage.

• How coherent is the overall approach and methodology of the proposal, and clearly outline how it will meet some of key principals of the workstreams and scope of work, such as: (20 points)
  • Open-sourcesimulationtoolfordemandflexibility o Regulatory assessment and recommendations
  • Demand flexibility program design
  • Stakeholders buy-in at state and federal levels
  • Training and capacity building for utilities and state regulators
• Are the activities proposed appropriate, practical, and consistent with the objectives and expected
  results? (5 points)
• Is the action plan clear and feasible, with a clear flow and sequence to activities? Bidders are
  encouraged to present accelerated timelines. (5 points)

Team Composition: 25 points

Qualification and Expertise of personnel as per section 7.3:

• Does the team meet the minimum requirements for each respective team member? (10 points)
• Expertise offered by the overall team and its structure in line with the scope of work and workstreams
  (5 points)
• Are roles and responsibilities effectively defined? (5 points)
• Does the team have a balanced gender ratio? Firms are encouraged to ensure at least 40% female
  representation in the team. (5 points)

Minimum technical passing score is 60 points. Firms who pass the min. passing score will be considered for the commercial evaluation.

3. Commercial Evaluation Criteria Budget and Cost-effectiveness: 20 points

• Is the proposal cost-effective and efficient?